Oil Markets Show Little Movement Amid OPEC Decision Expectations

Strategic Insights -

Oil markets remained relatively stable on Mar 24, 1994, with the market awaiting the Organization of Petroleum Exporting Countries' (OPEC) decision to not cut production quotas. Despite the anticipation of a lack of production reductions, West Texas Intermediate futures for May 1994 delivery increased 18 cents to $15.08/bbl, while natural gas futures for April 1994 delivery lost 9.6 cents to close at $1.981/MMBtu.

Key Takeaways:

  • West Texas Intermediate (WTI) crude oil futures for May delivery rose 18 cents to $15.08/bbl on the New York Mercantile Exchange, despite no news developments to justify the rise.
  • May North Sea Brent futures gained only 9 cents to $13.89/bbl on London's International Petroleum Exchange, while Dated Brent dipped 2 cents to $14.48/bbl as North Sea loadings returned to normal and Russian cargoes began showing up in the Mediterranean.
  • Russian Urals lost 7 cents to $14.08, and Iran Light slipped 2 cents to $13.98 at the Egyptian port of Sidi Kerir.
  • Unleaded gasoline futures for April delivery to New York Harbor inched up 0.07 cents to 46.66 cents/gallon, while wholesale unleaded regular gained 0.2 cents to 51.90 cents/gallon.
  • April No. 2 heating oil futures edged up 0.19 cents to 45.21 cents/gallon, with wholesale No. 2 declining 0.03 cents to 50.07 cents/gallon.
  • Low-sulfur diesel rose 0.10 cents to 54.63 cents/gallon.
  • April natural gas futures plunged 9.6 cents to $1.981/MMBtu, which is below the key $2/MMBtu level.

Statistics:

  • West Texas Intermediate futures for May 1994 delivery increased 18 cents to $15.08/bbl.
  • Natural gas futures for April 1994 delivery lost 9.6 cents to close at $1.981/MMBtu.
  • Total U.S. working natural gas in storage was 865 Bcf for the week ended March 18, down 5.5% from a revised figure for the week earlier.
  • Storage for the producing region was 277 Bcf, up 4.1% from a revised estimate for the previous week of 266 Bcf.
  • Estimated working gas in storage in the eastern consuming region was 354 Bcf, down 15.5% from 419 Bcf the week earlier.
  • Estimated storage for the western consuming region was 234 Bcf, up 1.7% from 230 Bcf the week before.

Sources:

  • Oil markets showed little movement Thursday awaiting developments from the Geneva meeting of the Organization of Petroleum Exporting Countries (OPEC), despite the widespread expectation that no reduction in the group's output ceiling is likely. (Washington Post)
  • West Texas Intermediate (WTI) crude oil futures for May delivery rose 18 cents to $15.08/bbl on the New York Mercantile Exchange, although there were no news developments to justify the rise. (Bloomberg)
  • May North Sea Brent futures gained only 9 cents to $13.89/bbl on London's International Petroleum Exchange. (Financial Times)
  • American Gas Association (AGA) estimates total U.S. working natural gas in storage to be 865 Bcf for the week ended March 18, down 5.5% from a revised figure for the week earlier. (AGA)